Have you received an orange postcard in the mail advising of your real estate taxes going up? After fielding many questions from clients, John Murray, Sr – a local attorney – has provided a perspective on the recent increase in real estate taxes. Read his opinion on this confusing issue facing the majority of Erie Countians.
John Murray, Sr fb post:
Real Estate Tax Increase
As an Erie County lawyer, I have fielded many questions from confused clients about the property valuation tax increase. One cause for confusion is that the reduced increase in taxes has been called a “tax cut.” The commissioners correctly called their action a reduction in the state mandated real estate tax increase. That increase is estimated to be 25% to 30% more than your current tax charge. The Erie County part of the tax increase is approximately 4%. The county is forgoing collecting 4% of the increase. Thus, in concrete terms, if you currently have a home market valued at $150,000 and you pay $3000 annually in real estate taxes your tax will increase to $3750 to $4000 minus 4% of the increase.
Thus, you will have a reduction of $30 to $40 for one year. Of course, this tax break becomes much larger the more expensive your property is valued. For instance, if you own a $2,000,000 home on the lake or a mansion on five acres near Plum Brook Country Club , or you own hundreds of rental units, your tax increase relief will be quite substantial. Hopefully this helps clarify the upcoming tax increase.